Quarterly Report May 31, 2018 MFS. New Discovery Fund

Transcription

1 Quarterly Report May 31, 2018 MFS New Discovery Fund

2 PORTFOLIO OF INVESTMENTS 5/31/18 (unaudited) The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes. Issuer Value ($) Common Stocks 96.6% Aerospace 3.4% CACI International, Inc., A (a) 85,167 $ 14,193,081 Curtiss-Wright Corp. 117,290 14,925,152 FLIR Systems, Inc. 242,511 13,071,343 $ 42,189,576 Automotive 2.6% Hella KGaA Hueck & Co. 117,733 $ 7,404,808 Kar Auction Services, Inc. 297,124 15,679,233 WABCO Holdings, Inc. (a) 76,988 9,310,159 $ 32,394,200 Biotechnology 5.3% Aimmune Therapeutics, Inc. (a) 159,475 $ 5,277,028 Alder Biopharmaceuticals, Inc. (a) 451,539 7,879,356 Amicus Therapeutics, Inc. (a) 472,455 7,984,489 Bio-Techne Corp. 62,088 9,333,068 Exact Sciences Corp. (a) 101,987 6,072,306 Immunomedics, Inc. (a) 336,306 7,418,910 MiMedx Group, Inc. (a)(l) 337,167 2,838,946 Morphosys AG, ADR (a) 235,495 6,238,263 Neurocrine Biosciences, Inc. (a) 58,099 5,592,610 Spark Therapeutics, Inc. (a) 76,522 6,105,690 Tesaro, Inc. (a) 46,745 2,139,519 $ 66,880,185 Brokerage & Asset Managers 2.0% Hamilton Lane, Inc., A 152,364 $ 7,124,540 TMX Group Ltd. 110,532 6,931,480 WisdomTree Investments, Inc. 1,003,851 11,002,207 $ 25,058,227 Business Services 4.6% CoStar Group, Inc. (a) 14,059 $ 5,359,572 Global Payments, Inc. 98,173 10,912,911 WNS (Holdings) Ltd., ADR (a) 288,865 14,772,556 Yext, Inc. (a) 695,659 10,706,192 Zendesk, Inc. (a) 271,610 15,180,283 $ 56,931,514 Chemicals 1.1% Ingevity Corp. (a) 188,170 $ 14,327,264 Computer Software 7.2% 8x8, Inc. (a) 572,469 $ 10,705,170 Cadence Design Systems, Inc. (a) 207,783 8,820,388 DocuSign, Inc. (a) 93,863 4,675,316 Everbridge, Inc. (a) 192,640 8,874,925 Okta, Inc. (a) 98,480 5,535,561 Paylocity Holding Corp. (a) 202,131 12,077,327 Pluralsight, Inc., A (a) 433,132 9,321,001 RingCentral, Inc. (a) 130,243 9,865,907 Twilio, Inc., A (a) 181,051 9,771,323 Ultimate Software Group, Inc. (a) 37,623 9,862,869 $ 89,509,787 1

3 Portfolio of Investments (unaudited) continued Issuer Value ($) Common Stocks continued Computer Software - Systems 10.6% Box, Inc. (a) 447,483 $ 11,491,363 EVO Payments, Inc., A (a) 423,491 9,096,587 Five9, Inc. (a) 371,166 12,949,982 ForeScout Tech, Inc. (a) 332,510 10,001,901 Kinaxis, Inc. (a) 75,290 4,950,814 New Relic, Inc. (a) 97,597 9,914,879 NICE Systems Ltd., ADR (a) 156,332 16,532,109 Proofpoint, Inc. (a) 68,637 8,022,979 Q2 Holdings, Inc. (a) 212,293 12,132,545 Rapid7, Inc. (a) 466,085 14,760,912 RealPage, Inc (a) 131,548 7,728,445 SS&C Technologies Holdings, Inc. 290,179 14,773,013 $ 132,355,529 Construction 3.9% Foundation Building Materials, Inc. (a) 648,900 $ 9,960,615 GMS, Inc. (a) 378,652 11,340,627 Lennox International, Inc. 49,410 10,045,547 Siteone Landscape Supply, Inc. (a) 73,527 5,562,318 Summit Materials, Inc., A (a) 411,871 11,705,374 $ 48,614,481 Consumer Products 0.5% E.L.F. Beauty, Inc. (a)(l) 310,651 $ 5,855,771 Consumer Services 2.6% 51job, Inc., ADR (a) 118,816 $ 12,642,022 Bright Horizons Family Solutions, Inc. (a) 196,405 19,876,186 $ 32,518,208 Containers 1.6% Berry Global Group, Inc. (a) 425,858 $ 20,564,683 Electrical Equipment 2.4% CTS Corp. 315,844 $ 10,264,930 Littlefuse, Inc. 68,290 14,822,344 WESCO International, Inc. (a) 84,131 4,993,175 $ 30,080,449 Electronics 5.1% Brooks Automation, Inc. 421,826 $ 13,785,274 Inphi Corp. (a)(l) 335,856 11,345,216 MACOM Technology Solutions Holdings, Inc. (a)(l) 188,411 4,248,668 Monolithic Power Systems, Inc. 99,693 13,140,534 nlight, Inc. (a) 138,855 5,158,463 Silicon Laboratories, Inc. (a) 154,021 16,264,618 $ 63,942,773 Entertainment 0.8% Live Nation, Inc. (a) 226,246 $ 9,644,867 Food & Beverages 0.1% Flex Pharma, Inc. (a)(l) 228,187 $ 867,111 Forest & Paper Products 0.5% Trex Co., Inc. (a) 51,025 $ 6,012,276 2

4 Portfolio of Investments (unaudited) continued Issuer Value ($) Common Stocks continued Internet 2.4% LogMeIn, Inc. 179,105 $ 19,325,429 MINDBODY, Inc., A (a) 274,275 10,806,435 $ 30,131,864 Machinery & Tools 2.6% Gardner Denver Holdings, Inc. (a) 186,190 $ 6,120,065 Gates Industrial Corp. PLC (a) 679,903 10,103,359 Lincoln Electric Holdings, Inc. 81,744 7,324,262 Ritchie Bros. Auctioneers, Inc. 254,251 8,664,874 $ 32,212,560 Medical & Health Technology & Services 6.7% Capital Senior Living Corp. (a) 387,925 $ 4,232,262 Charles River Laboratories International, Inc. (a) 101,061 10,866,079 ICON PLC (a) 146,637 18,913,240 Medidata Solutions, Inc. (a) 175,573 13,547,213 OptiNose, Inc. (a)(l) 426,863 9,847,729 Syneos Health, Inc. (a) 295,582 12,710,026 Teladoc, Inc. (a) 257,127 13,087,764 $ 83,204,313 Medical Equipment 10.4% DexCom, Inc. (a) 69,821 $ 6,143,550 Inspire Medical Systems, Inc. (a) 76,561 2,296,830 irhythm Technologies, Inc. (a) 113,859 8,656,700 Masimo Corp. (a) 135,136 13,385,221 Merit Medical Systems, Inc. (a) 246,481 12,644,475 Mesa Laboratories, Inc. 38,086 6,058,721 Nevro Corp. (a) 126,142 9,926,114 NuVasive, Inc. (a) 175,310 8,986,391 PerkinElmer, Inc. 193,237 14,363,306 Quidel Corp. (a) 199,946 12,536,614 Steris PLC 168,090 17,454,465 Tactile Systems Technology, Inc. (a) 147,664 7,328,564 West Pharmaceutical Services, Inc. 114,067 10,608,231 $ 130,389,182 Network & Telecom 1.7% Interxion Holding N.V. (a) 186,150 $ 11,887,539 Switch, Inc. 772,963 9,646,578 $ 21,534,117 Oil Services 0.5% Liberty Oilfield Services, Inc. (a)(l) 326,914 $ 6,950,192 Other Banks & Diversified Financials 3.2% Bank of the Ozarks, Inc. 249,809 $ 11,875,920 Pinnacle Financial Partners, Inc. 161,026 10,796,793 Preferred Bank 88,967 5,667,198 Wintrust Financial Corp. 131,080 12,073,779 $ 40,413,690 Pharmaceuticals 1.3% Aratana Therapeutics, Inc. (a) 840,532 $ 4,286,713 Collegium Pharmaceutical, Inc. (a) 254,315 5,752,605 PetIQ, Inc. (a)(l) 353,037 6,760,659 $ 16,799,977 3

5 Portfolio of Investments (unaudited) continued Issuer Value ($) Common Stocks continued Pollution Control 1.4% Clean Harbors, Inc. (a) 116,335 $ 6,165,755 Evoqua Water Technologies LLC (a) 563,627 10,872,365 $ 17,038,120 Railroad & Shipping 0.3% StealthGas, Inc. (a) 999,885 $ 3,969,543 Real Estate 2.0% Big Yellow Group PLC, REIT 469,319 $ 5,802,172 Life Storage, Inc., REIT 66,862 6,186,072 STAG Industrial, Inc., REIT 499,310 13,301,619 $ 25,289,863 Restaurants 4.4% Dave & Buster s, Inc. (a) 268,293 $ 11,171,721 Performance Food Group Co. (a) 584,267 20,887,545 U.S. Foods Holding Corp. (a) 635,919 22,689,590 $ 54,748,856 Special Products & Services 0.9% Boyd Group Income Fund, IEU 122,962 $ 10,784,543 Specialty Chemicals 4.5% Axalta Coating Systems Ltd. (a) 245,639 $ 7,641,829 Ferro Corp. (a) 583,399 11,936,344 Ferroglobe PLC (a) 613,216 6,273,200 RPM International, Inc. 296,291 14,666,404 Univar, Inc. (a) 566,933 15,460,263 $ 55,978,040 Total Common Stocks $1,207,191,761 Investment Companies (h) 3.5% Money Market Funds 3.5% MFS Institutional Money Market Portfolio, 1.82% (v) 43,496,742 $ 43,492,392 Collateral for Securities Loaned 1.1% State Street Navigator Securities Lending Government Money Market Portfolio, 1.72% (j) 13,945,482 $ 13,945,482 Other Assets, Less Liabilities (1.2)% (15,185,964) Net Assets 100.0% $1,249,443,671 (a) (h) (j) (l) (v) Non-income producing security. An affiliated issuer may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund s investments in affiliated issuers and in unaffiliated issuers were $43,492,392 and $1,221,137,243, respectively. The rate quoted is the annualized seven-day yield of the fund at period end. A portion of this security is on loan. Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. The following abbreviations are used in this report and are defined: ADR American Depositary Receipt IEU International Equity Unit PLC Public Limited Company REIT Real Estate Investment Trust See attached supplemental information. For more information see notes to financial statements as disclosed in the most recent semiannual or annual report. 4

6 Supplemental Information 5/31/18 (unaudited) The fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services - Investment Companies. (1) Investment Valuations Equity securities, including restricted equity securities, are generally valued at the last sale or official closing price on their primary market or exchange as provided by a third-party pricing service. Equity securities, for which there were no sales reported that day, are generally valued at the last quoted daily bid quotation on their primary market or exchange as provided by a third-party pricing service. Short-term instruments with a maturity at issuance of 60 days or less may be valued at amortized cost, which approximates market value. Open-end investment companies are generally valued at net asset value per share. Securities and other assets generally valued on the basis of information from a third-party pricing service may also be valued at a broker/dealer bid quotation. In determining values, third-party pricing services can utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data. The values of foreign securities and other assets and liabilities expressed in foreign currencies are converted to U.S. dollars using the mean of bid and asked prices for rates provided by a third-party pricing service. The Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the fund s investments (including any fair valuation) to the adviser pursuant to valuation policies and procedures approved by the Board. If the adviser determines that reliable market quotations are not readily available, investments are valued at fair value as determined in good faith by the adviser in accordance with such procedures under the oversight of the Board of Trustees. Under the fund s valuation policies and procedures, market quotations are not considered to be readily available for most types of debt instruments and floating rate loans and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services. In addition, investments may be valued at fair value if the adviser determines that an investment s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior to the determination of the fund s net asset value, or after the halting of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally traded. Events that occur on a frequent basis after foreign markets close (such as developments in foreign markets and significant movements in the U.S. markets) and prior to the determination of the fund s net asset value may be deemed to have a material effect on the value of securities traded in foreign markets. Accordingly, the fund s foreign equity securities may often be valued at fair value. The adviser generally relies on third-party pricing services or other information (such as the correlation with price movements of similar securities in the same or other markets; the type, cost and investment characteristics of the security; the business and financial condition of the issuer; and trading and other market data) to assist in determining whether to fair value and at what value to fair value an investment. The value of an investment for purposes of calculating the fund s net asset value can differ depending on the source and method used to determine value. When fair valuation is used, the value of an investment used to determine the fund s net asset value may differ from quoted or published prices for the same investment. There can be no assurance that the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share. Various inputs are used in determining the value of the fund s assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fund s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes unobservable inputs, which may include the adviser s own assumptions in determining the fair value of investments. The following is a summary of the levels used as of May 31, 2018 in valuing the fund s assets or liabilities: Financial Instruments Level 1 Level 2 Level 3 Total Equity Securities $1,207,191,761 $ $ $1,207,191,761 Mutual Funds 57,437,874 57,437,874 Total $1,264,629,635 $ $ $1,264,629,635 For further information regarding security characteristics, see the Portfolio of Investments. (2) Securities Lending Collateral At May 31, 2018, the value of securities loaned was $13,653,924. These loans were collateralized by cash of $13,945,482 and U.S. Treasury Obligations of $191,381. 5

7 Supplemental Information (unaudited) continued (3) Investments in Affiliated Issuers An affiliated issuer may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. For the purposes of this report, the fund assumes the following to be affiliated issuers: Affiliated Issuers Beginning Acquisitions Dispositions Ending MFS Institutional Money Market Portfolio 23,454, ,922,607 (339,880,390) 43,496,742 Affiliated Issuers Realized Gain (Loss) Change in Unrealized Appreciation/ Depreciation Capital Gain Distributions Dividend Income MFS Institutional Money Market Portfolio $(4,847) $464 $ $359,357 $43,492,392 Ending Value 6